The mortgage market in Canada is causing a big stir this week, as at least four big banks lowered their mortgage rates…quietly. Everyone is watching as the four biggest banks in our country, tried to ‘one-up’ each other as competitors continue to lower rates; and today we learn Bank of Canada is keeping the interest rate unchanged as well.
All of the lower rate trends happening this week, occurred without any major notice to the public, they just kind of happened. Experts like the professionals at CAAMP (Canadian Association of Accredited Mortgage Professionals), have some insight on what’s happening:
Jim Murphy, chief executive of the Canadian Association of Accredited Mortgage Professionals, said 2013 turned out to be a major year for discounting with the average consumer saving 2.12 percentage on points on a five-year closed fixed-rate mortgage. The average rate for that term was 3.06% while average posted rate for the term was 5.21% in 2013.
“One might say we are entering a busier period for home buying so we will see a more competitive marketplace [in 2014],” Mr. Murphy said. – Financial Post